Dear Sir or Madam,
The CBAM (Carbon Border Adjustment Mechanism) covers direct emissions from the iron, steel, aluminium, cement, fertiliser, electricity and hydrogen sectors, as well as indirect emissions in industries without electricity price compensation (e.g. cement, fertilisers). This mainly affects raw materials, intermediate products and a few processed products. The European Commission is considering a possible extension to other areas.
Since October 2023, importers have been required to report their direct and indirect emissions to the EU Commission on a quarterly basis. From 2026, CO₂ certificates will be mandatory and must be submitted annually. The first certificate submission for 2026 will take place in 2027.
The aim of the CBAM is to create a level playing field for companies in the EU vis-à-vis third countries where there is no or lower pricing of greenhouse gas emissions.
The CBAM has now been significantly streamlined and small importers are no longer affected by it. According to the European Commission, the new regulation exempts around 90 per cent of the companies previously affected, as reported by the Federal Environment Agency.
The European Carbon Border Adjustment Mechanism will now be simplified and limited to large imports of raw materials from outside the EU. Small companies with less than 50 tonnes per year will be exempt from the CBAM from 2026. This is intended to reduce bureaucracy and create fair competitive conditions, while at the same time meeting climate targets.
Prices for EU emission allowances remained virtually unchanged last week compared to the previous week. EUA prices moved within a relatively narrow range between €77.01 and €78.67 in the benchmark contract, between technical support and resistance levels.
It remains to be seen whether the EUAs will now break out of their previous upward trend to test the €80 mark again, or whether they will break through the current formation downwards and trend towards €76.
In national emissions trading, the final phase of purchases by obligated companies is now beginning, as the last auction for emission allowances with the annual identifier 2025 (nEZ25) will take place in just over a month. Further purchases at a price of €55 will only be permitted next year for a maximum of 10% of the quantity held in the company’s own registry account on 31 December 2025.
However, as technical problems, employee illness or other obstacles can never be ruled out, it is advisable not to wait until the last auctions and to proceed with procurement as soon as possible after making the best possible calculations.
| Instrument | 24/10/25 | 31/10/25 | Change |
| EUA (December-25-Future) | 78.32 EUR | 78.54 EUR | +0.22 EUR |
| EUA2 (December-27-Future) | 62.59 EUR | 65.85 EUR | +3.26 EUR |
| nEZ25 (national Emission Allowances (D)) | 55.00 EUR | 55.00 EUR | +0.00 EUR |
| UKA (December-25-Future (UK)) | 54.60 GBP | 56.27 GBP | +1.67 GBP |
| UK Natural Gas (December-25-Future) | 83.29 GBP | 80.87 GBP | -2.42 GBP |
| ICE Brent Crude Oil (December-25-Future) | 65.94 USD | 65.07 USD | -0.87 USD |
| EURO (Forex) | 1.1627 USD | 1.1537 USD | -0.0090 USD |
(EUA, EUA2, UKA, Natural Gas, Crude Oil and Euro Currency shows day-end-exchange quotes of the benchmark contract. This market information has just an informational character and are no advice or offer to trade emission allowances or their futures and options. If you want to unsubscribe, please reply to this mail.)
Please call our international carbon desk if any further questions exist: +49.2831.1348220 or book here a call with one of our specialists.
With kind regards,
Your Advantag – Team